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September 13, 2018 at 02:39 PM
Six weeks after Fidelity announced its first no-fee index mutual funds, it disclosed plans to add two more funds to that roster, doubling the number.
The Fidelity ZERO Large Cap Index Fund (FNILX) and Fidelity ZERO Extended Market Index Fund (FZIPX) will begin trading Sept. 18 and, like the two earlier ZERO funds, will be available to individual investors with no minimum investment.
(Related: Fidelity Unleashes No-Fee Index Funds)
The Fidelity ZERO Large Cap Index Fund will “normally” invest at least 80% of its assets in the common stocks of large-cap companies included in the Fidelity U.S. Large Cap Index, a proprietary float-adjusted, market capitalization-weighted, rules-based index, according to the firm’s registration filing with the Securities and Exchange Commission.
The ZERO Extended Market Index Fund will “normally” invest at least 80% of its assets in stocks included in the Fidelity U.S. Extended Investable Market Index, also a proprietary float-adjusted, market cap-weighted index but composed of U.S. mid- and small-cap stocks.
Both funds will attempt to replicate the returns of their benchmark indexes by investing in fewer stocks than included in the indexes, using statistical sampling techniques based on factors such as capitalization, dividend yield, price-to-earnings and price-to-book ratio and earnings growth. Both funds will also lend securities to earn income.
“Our ZERO fund lineup … [is] bringing innovation and value to investors, and we’re pleased so many investors have taken advantage of this offering,” said Kathleen Murphy, president of Fidelity Investments’ personal investing business, in a statement.
